Danish Aerospace Company A/S issues Interim report for 2023
COMPANY ANNOUNCEMENT
Odense, August 28th, 2023
Company Announcement no. 44 - 28-08-2023
Danish Aerospace Company A/S issues Interim report for 2023
The Board of Directors of Danish Aerospace Company A/S (DAC) have today approved the interim report for 2023. The report has not been audited.
Highlights - Interim Report 2023
- Revenue was DKK 9,9 million, while Gross Profit was DKK 7,6 million.
- Operating Profit (EBITDA) was DKK -0,4 million.
- Net profit of DKK -1 million, a drop compared to last year mainly due to financial expenses and US dollar exchange rate.
- DAC is extremely proud that Andreas Mogensen’s Huginn mission to the International Space Station has begun. We are looking forward to work with Andreas as he demonstrates three newly-developed DAC technologies.
- DAC is heavily engaged in manufacturing, assembly and integration of the E4D and associated exercise hardware for ESA and Axiom. This involves substantial procurement of components, mechanical manufacturing in-house and by numerous subcontractors and the associated surface treatment of these parts. All of which have an impact on the cash flow in the first half of the year as planned.
- DAC is awaiting the additional Contract Change Note from ESA on the Gaintex-contract, which ESA now has signed an agreement with DAC to continue.
- The first NASA FERGO ergometers were launched to ISS in early August.
- DAC has developed and prepared three sets of hardware for Andreas Mogensen’s next flight to ISS in August 2023. One set was launched in the spring and the remaining two will be launched in the late autumn. The experiments will strengthen the development in the product portfolio going forward.
- Financial guidance for fiscal year 2023 is maintained, however the current expectations are now towards the lower end of both Revenue and EBITDA guidance.
CEO, Thomas A. E. Andersen, states:
“Danish Astronaut Andreas Mogensen’s Huginn mission to the International Space Station marks the beginning of a particularly exciting opportunity for Danish Aerospace. During his six-month stay in orbit, Andreas will be among the first to use our new FERGO ergometer built for NASA and launched to the ISS in early August. Andreas will also be helping demonstrate three new technologies developed by Danish Aerospace to monitor human health, add virtual reality to in-space exercise sessions and improve on-orbit water recycling capabilities. These new technologies have considerable potential for use on future space missions as well as in extreme terrestrial environments.
This is an extremely busy and rewarding period for Danish Aerospace during which we also have been manufacturing our exercise equipment for government and industry customers while at the same time launching new equipment and technology demonstrations into space. ”
Management review
During the spring of 2023 DAC had the first of three sets of hardware for Andreas Mogensen Huginn’ mission Launched on SpaceX-28. In early August, the first of the new NASA FERGO exercise ergometers, which DAC has built for NASA, was launched to ISS. This will be accompanied by a second FERGO to be launched later in the year.
DAC is already seeing an increase in interest from other potential users of the DAC technologies which will be tested on Andreas Mogensen’s long duration spaceflight this year. These new technologies target both the new growing commercial human spaceflight market. They also have promising applications in extreme environments on earth.
During his six-month mission on the International Space Station Andreas Mogensen will test the company’s Wearable technology in space, demonstrate the use of Virtual Reality with DAC’s exercise equipment and test our water purification technologies developed together with Aquaporin Space Alliance ApS. These newly developed capabilities are closely aligned to DAC’s long-term business strategy.
ESA and DAC have signed the Novation agreement passing over the Gaintex contract from the former Ohmatex to DAC. DAC is now awaiting the associated Contract Change Notice from ESA to initiate and execute this new project.
DAC has also continued its work on internal development and European Defense Fund projects involving wearable sensors for health monitoring of navy divers and for the training of military personnel and others operating in other extreme environments on Earth.
In the first half of 2023, DAC again passed the quality audit, which is the company’s AS/EN9100 standard, rev. D quality control system approval by Bureau Veritas.
Expectations for the year
The expectations for the years revenue and profit as presented in DAC’s Annual Report 2022 are maintained:
- Revenue of DKK 24-27 million; and
- positive EBITDA of DKK 3-4 million.
However, the current expectations are now towards the lower end of both Revenue and EBITDA guidance.
The final Interim report for 2023 will be available on the company’s website by August 28th, 2023, via the link below:
Interim Report - Danish Aerospace Company
Attachments:
Appendix 1 – Key Figures – Interim 2023
Appendix 2 – Changes in Equity 2023
Appendix 3 – Cash Flow 2023
Note: This is a translation of the corresponding Company Announcement in Danish. In case of discrepancies between the Danish wording and the English translation, the Danish wording prevails.
For further information, please contact:
Danish Aerospace Company A/S:
Chairman of the Board of Directors Niels Heering
Mobile: +45 40 17 75 31
Thomas A.E. Andersen, CEO
Tel: +45 40 29 41 62
Mail: [email protected]
Certified Adviser:
Baker Tilly Corporate Finance P/S
(Company reg. (CVR) no. 40073310)
Poul Bundgaards Vej 1
DK-2500 Valby
Tel.: +45 33 45 10 00
www.bakertilly.dk
About Danish Aerospace Company A/S:
Danish Aerospace Company is a high-tech company operating in the area of advanced medical instrumentation and other engineering fields primarily within space applications. Our products are based on many years of specialized research and development. These consist of developing, integrating, and applying new as well as established medical technologies to the challenges of functioning and remaining reliable in space. These products and services bring the potential of space research and experience from space operations down to Earth for the benefit of all Mankind.
Danish Aerospace Company employs engineers and technicians who deliver full engineering, production and technical services for our customers. We have specialized in customer specific design, development, manufacturing, certification, maintenance, testing, and operations.
The company has developed five generations respiratory equipment for spaceflight, bicycle ergometers for astronauts, countermeasures, adapted several commercial medical equipment for spaceflight and has participated in the development of the minus eighty degree-celsius freezers.
The Company’s quality system is certified in obligation to BS EN ISO 9001:2015, BS EN 9100:2018 technical equivalent to AS9100D that is the acknowledged standard in the area.
Appendix 1 - Key figures - Interim 2023
| 1/1-2023 - 30/6-2023 | 1/1-2022 - 30/6-2022 | |
| Revenue | 9,919,857 | 10,995,079 |
| Gross profit/loss | 7,588,202 | 8,381,874 |
| Other Operating Income | 1,162,276 | 103,055 |
| EBITDA | -418,221 | 600,723 |
| Operating profit/loss | -800,351 | 214,750 |
| Net financials | -205,657 | 690,343 |
| Net Profit/loss for the period | -1,002,340 | 323,903 |
| Total assets | 42,323,456 | 29,408,047 |
| Equity | 20,425,059 | 19,657,423 |
Share performance Earnings per share (DKK) Total number of shares No. of shares (on average) Closing share price (DKK) | -0.09 10,908,330 10,908,330 3.9 | 0.03 10,908,330 10,908,330 4.5 |
Appendix 2 - Changes in Equity Interim 2023
Share capital | Reserve for development costs | Retained earnings | Total | ||||
| DKK | DKK | DKK | DKK | ||||
| Equity at 1 January | 1,090,833 | 1,052,856 | 19,162,540 | 21,306,229 | |||
| Development costs for the period Depreciation, amortisation and impairment for the period | 0 0 | 442,597 -103,049 | -442,597 103,049 | 0 0 | |||
| Exchange adjustments relating to foreign entities | 0 | 0 | 121,170 | 121,170 | |||
| Net profit/loss for the period | 0 | 0 | -1,002,340 | -1,002,340 | |||
Equity at 30 June | 1,090,833 | 1,392,404 | 17,941,822 | 20,425,059 |
Appendix 3 - Cash flow Interim 2023
| 1/1-2023 - | 1/1-2022 - | |||
| 6/30-2023 | 6/30-2022 | |||
| DKK | DKK | |||
Net profit/loss for the period | -1,002,340 | 323,903 | ||
| Adjustments | 584,118 | 276,819 | ||
| Change in working capital | -7,591,999 | -2,922,588 | ||
Cash flows from operating activities before financial income and expenses | -8,010,221 | -2,321,866 | ||
Financial income | 65,997 | 704,643 | ||
| Financial expenses | -394,717 | -14,300 | ||
Cash flows from operating activities | -8,338,941 | -1,631,523 | ||
Purchase of intangible assets | -659,089 | -205,266 | ||
| Purchase of property, plant and equipment | -19,300 | -193,484 | ||
Cash flows from investing activities | -678,389 | -398,750 | ||
Raising of loans from credit institutions | 9,038,206 | 824,718 | ||
| Loans to group enterprises | -89,458 | -1,132,586 | ||
Cash flows from financing activities | 8,948,748 | -307,868 | ||
Change in cash and cash equivalents | -68,582 | -2,338,141 | ||
Cash and cash equivalents at 1 January | 106,433 | 2,682,873 | ||
Cash and cash equivalents at 30 June | 37,851 | 344,732 | ||
